Browse Forums Home Finance Re: Land loan and construction loan 2Mar 26, 2020 7:08 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land loan and construction loan 4Mar 26, 2020 7:27 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land loan and construction loan 6Mar 26, 2020 7:44 pm Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land loan and construction loan 9Jan 13, 2021 11:33 am Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Land loan and construction loan 10Jan 13, 2021 12:42 pm becjarrettdalton Jojac becjarrettdalton Hi Annie, Firstly - to your extension, what state are you in? What you’ve done sounds very normal. You can’t get the build loan approved without plans and a build contract (with only a couple of exceptions where they’ll use tender depending on state). Typically I do: Land loan fully approved Preapproval for build As if complete valuation for build Build loan fully approved - this May or may not absorb the land loan. The land will settle anywhere in that list. Hi, Was just looking to see if anyone has already asked, and this thread maybe the closest. Is there any advantages / disadvantages to doing separate loan (settle land first then construction loan) compare to combine loan together at once? We’re still waiting for our land to register and we’re pretty confident we can have our build plans and contracts in place even before the land settles. Our deposit is less than 20% so we’ll be paying LMI.. i’ve read somewhere about double dipping of LMI when doing separate loans because it will be technically refinancing the land loan to combine to the 2 loans together. Though our broker mentioned about land valuation coming in over and thus could also be an advantage to doing separate loans. Can anyone shed light? Thank you! I'll pick up this and reply - the only way it double dips on LMI is if you change lender, otherwise the premium you pay for the build portion (in two separate loans example) is a "top up" based on the loan amount and eventual % you borrow. There are realistically no advantages, except where timing helps you or there are special offers; eg: 1. aim to borrow 80% of the land (if possible) and cross your fingers the valuation goes up by the time you're ready to build 2. or, currently there are some special offers for no LMI to 85% on the land (only) - and these may expire depending on your registration time frame) but potentially take advantage of one of these then pay LMI on the build only. Ask friends and family to refer you to a great broker local to you who can make sense of this overall for you Thanks so much for your response! This makes sense to me now The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20085 Hi there, I hope someone can give me some insight into a (very lucky) situation I'm dealing with. My Mum was gifted property by my grandfather after he passed. My… 0 736 Thanks very much! And would the landscaper/contractor generally involve the engineer or is that something the client would do? Thanks for your help 2 10569 |